India's Rafale jet talks brighten after rough patch

France's President Francois Hollande (left), shakes hands with Indian Prime minister Manmohan Singh at a ceremony at Hyderabad House in New Delhi on Feb 14, 2013. india and France are speeding up negotiations on a US$10 billion (S$12.5 billion) deal for 126 Rafale aircraft following disagreements over the cost of building them in India, which caused months of delays, two Indian Defence Ministry officials told Reuters. -- PHOTO: AFP

NEW DELHI (Reuters) - India and France are speeding up negotiations on a US$10 billion (S$12.5 billion) deal for 126 Rafale aircraft following disagreements over the cost of building them in India, which caused months of delays, two Indian Defence Ministry officials told Reuters.

India started exclusive talks with French Dassault Aviation's Rafale for a 126-plane order in January 2012, over the competing Eurofighter Typhoon. The two sides still have to sign a final contract.

French President Francois Hollande discussed the deal with Indian Prime Minister Manmohan Singh on Thursday, the first day of a two-day visit to India.

"We've seen progress in these discussions and I'm hopeful that they will succeed," Mr Hollande said after the talks. Dr Singh said discussions on the sale were "progressing well".